Market Turmoil as US Treasury Yields Drop

In a dramatic response to the United States' recent imposition of a 34% tariff on Chinese goods, China has announced a reciprocal 34% tariff on all US goods. This move has sent shockwaves through the financial markets, with investors swiftly turning to safe-haven assets amid fears of a global recession.

Investor Reaction and Market Impact

The yield on the 2-year US government bond fell sharply by 12.2 basis points to 3.578% by 9:19 am ET. Similarly, the 10-year yield saw a significant drop of 11.3 basis points to 3.92% by 9:20 am ET, and the 30-year bond yield also declined by 11.3 basis points to 4.364% by 9:21 am ET.

Further Escalation: Adding to the tensions, the Chinese Ministry of Commerce has imposed sanctions on 11 American companies and 16 US-based entities, marking a significant escalation in the ongoing trade dispute between the two economic powerhouses.